JOURNAL OF THE SENATE

EIGHTY-NINTH SESSION



TWENTY-FIFTH DAY



STATE OF SOUTH DAKOTA
Senate Chamber, Pierre
Monday, February 24, 2014

    The Senate convened at 2:00 p.m., pursuant to adjournment, the President presiding.

    The prayer was offered by the Chaplain, Dr. Fred MacDonald, followed by the Pledge of Allegiance led by Senate page Natalie Beranek.

    Roll Call: All members present except Sen. Bradford who was excused.

APPROVAL OF THE JOURNAL

MR. PRESIDENT:

    The Committee on Legislative Procedure respectfully reports that the Secretary of the Senate has had under consideration the Senate Journal of the twenty-fourth day.

    All errors, typographical or otherwise, are duly marked in the temporary journal for correction.

    And we hereby move the adoption of the report.

Respectfully submitted,
Corey Brown, Chair

    Which motion prevailed.
    The oath of office was administered by the President to the following named persons:

            Pages _ Natalie Beranek, Chase Conrad, Catherine Dougherty, Sunny Gaughen, Noele Gross, Connor McNenny, Seth Miller, Karina Noem, Jennifer Palmer

    Which was subscribed to and placed on file in the office of the Secretary of State.


COMMUNICATIONS AND PETITIONS

January 22, 2014

The Honorable Matt Michels
President of the Senate
State Capitol
Pierre, SD 57501

Dear Mr. President and Members of the Senate:

    Pursuant to the provisions of Chapter 1-45 of the South Dakota Codified Laws and subject to your consent, I have the honor to inform you that I have reappointed Stacy Phelps, Pennington County, Rapid City, South Dakota, to the South Dakota Board of Education.
    
    This appointment is effective immediately, and shall continue until December 31, 2016.

Sincerely,
Dennis Daugaard
Governor

    The President announced the referral of the appointment to the Committee on Education.

February 20, 2014

The Honorable Matt Michels
President of the Senate
500 East Capitol Avenue
Pierre, SD 57501-5070

Dear Mr. President and Members of the Senate:

    Pursuant to the provisions of Article IV, Section 9, of the Constitution, and subject to your consent, I am honored to inform you that I have appointed Lynne Valenti, Hughes County, Pierre, South Dakota, to the position of Secretary of the Department of Social Services.

    This appointment was effective February 7, 2014.

Sincerely,
Dennis Daugaard
Governor

    The President announced the referral of the appointment to the Committee on Health and Human Services.

REPORTS OF STANDING COMMITTEES

MR. PRESIDENT:

    The Committee on Legislative Procedure respectfully reports that the Office of Engrossing and Enrolling has carefully compared SB 39, 60, 88, and 119 and finds the same correctly enrolled.

Respectfully submitted,

Corey Brown, Chair

Also Mr. PRESIDENT:

    The Committee on Health and Human Services respectfully reports that it has had under consideration HB 1198 and returns the same with the recommendation that said bill do pass.

Also MR. PRESIDENT:

    The Committee on Health and Human Services respectfully reports that it has had under consideration HB 1157 and returns the same with the recommendation that said bill do pass and be placed on the consent calendar.

Respectfully submitted,
Jean M. Hunhoff, Chair

Also MR. PRESIDENT:

    The Committee on Transportation respectfully reports that it has had under consideration HB 1036, 1042, and 1090 and returns the same with the recommendation that said bills do pass and be placed on the consent calendar.

Respectfully submitted,
Mike Vehle, Chair

Also MR. PRESIDENT:

    The Committee on Appropriations respectfully reports that it has had under consideration SB 177 and returns the same with the recommendation that said bill do pass.

Also MR. PRESIDENT:

    The Committee on Appropriations respectfully reports that it has had under consideration SB 44 and returns the same with the recommendation that said bill be amended as follows:

44ma

    On page 1, line 13, of the printed bill, delete "million dollars".

    On page 1, line 14, delete "($1,000,000)" and insert "dollar ($1)".

    And that as so amended said bill do pass.

Also MR. PRESIDENT:

    The Committee on Appropriations respectfully reports that it has had under consideration SB 53 and returns the same with the recommendation that said bill be amended as follows:

53aa

    On page 1, line 4, of the printed bill, delete "five hundred".

    On page 1, line 5, delete everything before ", or" and insert "one dollar ($1)".

    And that as so amended said bill do pass.

Also MR. PRESIDENT:

    The Committee on Appropriations respectfully reports that it has had under consideration SB 122 and returns the same with the recommendation that said bill be amended as follows:

122ja

    On page 1, line 8, of the printed bill, delete everything after "children" and insert ", as defined as a person twenty-one years of age or younger, if prescribed or recommended by a licensed audiologist, physician, or other licensed health care provider legally authorized to prescribe or recommend such services. The services shall include audiological services, therapy, supplies, and equipment to diagnose, treat, and correct a hearing impairment.
    The policy shall provide for services and equipment appropriate for the child, at a minimum of fifteen hundred dollars per device per ear, with replacement of the equipment available at least every thirty-six months or sooner when the current device cannot be modified to be appropriate for the hearing loss. An insured may choose equipment that is priced higher than the payable benefit and may pay the difference between the price of the equipment and the payable benefit without financial or contractual penalty to the provider of the equipment.".

    On page 1, delete lines 9 to 11, inclusive.

    On page 2, line 4, delete everything after "children" and insert ", as defined as a person twenty-one years of age or younger, if prescribed or recommended by a licensed audiologist, physician, or other licensed health care provider legally authorized to prescribe or recommend such services. The services shall include audiological services, therapy, supplies, and equipment to diagnose, treat, and correct a hearing impairment.

    The policy shall provide for services and equipment appropriate for the child, at a minimum of fifteen hundred dollars per device per ear, with replacement of the equipment available at least every thirty-six months or sooner when the current device cannot be modified to be appropriate for the hearing loss. An insured may choose equipment that is priced higher than the payable benefit and may pay the difference between the price of the equipment and the payable benefit without financial or contractual penalty to the provider of the equipment.".

    On page 2, delete lines 5 to 7, inclusive.

    On page 2, line 14, delete everything after "children" and insert ", as defined as a person twenty-one years of age or younger, if prescribed or recommended by a licensed audiologist, physician, or other licensed health care provider legally authorized to prescribe or recommend such services. The services shall include audiological services, therapy, supplies, and equipment to diagnose, treat, and correct a hearing impairment.

    The policy shall provide for services and equipment appropriate for the child, at a minimum fifteen hundred dollars per device per ear, with replacement of the equipment available at least every thirty-six months or sooner when the current device cannot be modified to be appropriate for the hearing loss. An insured may choose equipment that is priced higher than the payable benefit and may pay the difference between the price of the equipment and the payable benefit without financial or contractual penalty to the provider of the equipment.".

    On page 2, delete lines 15 to 17, inclusive.

    On page 2, line 24, delete everything after "children" and insert ", as defined as a person twenty-one years of age or younger, if prescribed or recommended by a licensed audiologist, physician, or other licensed health care provider legally authorized to prescribe or recommend such services. The services shall include audiological services, therapy, supplies, and equipment to diagnose, treat, and correct a hearing impairment.

    The policy shall provide for services and equipment appropriate for the child, at a minimum of fifteen hundred dollars per device per ear, with replacement of the equipment available at least every thirty-six months or sooner when the current device cannot be modified to be

appropriate for the hearing loss. An insured may choose equipment that is priced higher than the payable benefit and may pay the difference between the price of the equipment and the payable benefit without financial or contractual penalty to the provider of the equipment.".


    On page 3, delete lines 1 to 3, inclusive.

    On page 3, line 10, delete everything after "children" and insert ", as defined as a person twenty-one years of age or younger, if prescribed or recommended by a licensed audiologist, physician, or other licensed health care provider legally authorized to prescribe or recommend such services. The services shall include audiological services, therapy, supplies, and equipment to diagnose, treat, and correct a hearing impairment.

    The policy shall provide for services and equipment appropriate for the child, at a minimum of fifteen hundred dollars per device per ear, with replacement of the equipment available at least every thirty-six months or sooner when the current device cannot be modified to be appropriate for the hearing loss. An insured may choose equipment that is priced higher than the payable benefit and may pay the difference between the price of the equipment and the payable benefit without financial or contractual penalty to the provider of the equipment.".

    On page 3, delete lines 11 to 13, inclusive.

    On page 3, line 20, delete everything after "children" and insert ", as defined as a person twenty-one years of age or younger, if prescribed or recommended by a licensed audiologist, physician, or other licensed health care provider legally authorized to prescribe or recommend such services. The services shall include audiological services, therapy, supplies, and equipment to diagnose, treat, and correct a hearing impairment.

    The policy shall provide for services and equipment appropriate for the child, at a minimum of fifteen hundred dollars per device per ear, with replacement of the equipment available at least every thirty-six months or sooner when the current device cannot be modified to be appropriate for the hearing loss. An insured may choose equipment that is priced higher than the payable benefit and may pay the difference between the price of the equipment and the payable benefit without financial or contractual penalty to the provider of the equipment.".

    On page 3, delete lines 21 to 23, inclusive.

122mb

    On the printed bill, delete everything after the enacting clause and insert:

    "Section 1. That chapter 58-17 be amended by adding thereto a NEW SECTION to read as follows:

    Any qualified health plan issued on or after January 1, 2015, that offers coverage for professional audiology services shall include coverage for medically necessary physician services appropriate for the treatment of hearing impairment to a person under the age of nineteen. This shall include professional services rendered by an audiologist licensed pursuant to chapter 36-24.

    The benefits provided shall be subject to the same dollar limits, deductibles, coinsurance and other limitations provided for other covered benefits in the policy.

    Nothing in this section requires the payment by the health plan of hearing aids, devices, or equipment to correct hearing impairment or loss.

    Section 2. That chapter 58-18 be amended by adding thereto a NEW SECTION to read as follows:

    Any qualified health plan issued on or after January 1, 2015, that offers coverage for professional audiology services shall include coverage for medically necessary physician services appropriate for the treatment of hearing impairment to a person under the age of nineteen. This shall include professional services rendered by an audiologist licensed pursuant to chapter 36-24.

    The benefits provided shall be subject to the same dollar limits, deductibles, coinsurance and other limitations provided for other covered benefits in the policy.

    Nothing in this section requires the payment by the health plan of hearing aids, devices, or equipment to correct hearing impairment or loss.

    Section 3. That chapter 58-18B be amended by adding thereto a NEW SECTION to read as follows:

    Any qualified health plan issued on or after January 1, 2015, that offers coverage for professional audiology services shall include coverage for medically necessary physician services appropriate for the treatment of hearing impairment to a person under the age of nineteen. This shall include professional services rendered by an audiologist licensed pursuant to chapter 36-24.

    The benefits provided shall be subject to the same dollar limits, deductibles, coinsurance and other limitations provided for other covered benefits in the policy.

    Nothing in this section requires the payment by the health plan of hearing aids, devices, or equipment to correct hearing impairment or loss.

    Section 4. That chapter 58-41 be amended by adding thereto a NEW SECTION to read as follows:

    Any qualified health plan issued on or after January 1, 2015, that offers coverage for professional audiology services shall include coverage for medically necessary physician services appropriate for the treatment of hearing impairment to a person under the age of nineteen. This shall include professional services rendered by an audiologist licensed pursuant to chapter 36-24.

    The benefits provided shall be subject to the same dollar limits, deductibles, coinsurance and other limitations provided for other covered benefits in the policy.
    Nothing in this section requires the payment by the health plan of hearing aids, devices, or equipment to correct hearing impairment or loss."

    And that as so amended said bill do pass.

Also MR. PRESIDENT:

    The Committee on Appropriations respectfully reports that it has had under consideration SB 149 and returns the same with the recommendation that said bill be amended as follows:

149ha

    On page 2, line 4, of the printed bill, delete everything after "one" .

    On page 2, line 5, delete everything before "or" and insert "dollar ($1),".

    On page 2, line 7, delete "four thousand dollars ($4,000)" and insert "one dollar ($1)".

    And that as so amended said bill do pass.

Respectfully submitted,
Deb Peters, Chair

Also MR. PRESIDENT:

    The Committee on Taxation respectfully reports that it has had under consideration HB 1221 which was deferred to the 41st Legislative Day.

Respectfully submitted,
Ernie Otten, Chair

Also MR. PRESIDENT:

    The Committee on State Affairs respectfully reports that it has had under consideration SB108 and HB 1050 and 1099 and returns the same with the recommendation that said bills do pass.

Also MR. PRESIDENT:

    The Committee on State Affairs respectfully reports that it has had under consideration HB 1051 and returns the same with the recommendation that said bill do pass and be placed on the consent calendar.

Also MR. PRESIDENT:

    The Committee on State Affairs respectfully reports that it has had under consideration SB 110 and returns the same with the recommendation that said bill be amended as follows:

110fa

    On the printed bill, delete everything after the enacting clause and insert:

    "Section 1. That § 3-6E-8 be amended to read as follows:

    3-6E-8. The State of South Dakota shall either make a monthly contribution to the system or otherwise provide for the amount necessary to make payment to the system for the full single rate monthly health insurance premium or contribution for each employee. Each employee shall pay a premium or make a contribution for the employee's health insurance that is equal to seven-tenths of a percent of the employee's salary. This amount shall be transmitted to the account of the state employees benefits plan in the Office of the State Treasurer. The state treasurer, after making a record of the receipts, shall credit the benefits plan with an amount equal to that remitted or otherwise provided. After the contribution has been assigned to the benefits plan, the Bureau of Human Resources shall disburse the contribution in accordance with the provisions of this chapter and the rules promulgated pursuant to chapter 1-26 by the commissioner of the Bureau of Human Resources. "


110fta

    On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "require state employees to make certain payments or contributions for health insurance.".

    On page 1, delete line 2.

    And that as so amended said bill do pass.

Also MR. PRESIDENT:

    The Committee on State Affairs respectfully reports that it has had under consideration SB 181 and returns the same with the recommendation that said bill be amended as follows:

181ob

    On the printed bill, delete everything after the enacting clause and insert:

    "Section 1. That chapter 34-46 be amended by adding thereto a NEW SECTION to read as follows:

    For the purposes of §§ 34-46-2 to 34-46-6, inclusive, and this Act, the term, tobacco product, includes vapor product. The term, vapor product, means any noncombustible product containing nicotine that employs a heating element, power source, electronic circuit, or other

electronic, chemical, or mechanical means, regardless of shape or size, that can be used to produce vapor from nicotine in a solution or other form. The term, vapor product, includes any electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device and any vapor cartridge or other container of nicotine in a solution or other form that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device. The term, vapor product, does not include any product approved by the United States Food and Drug Administration for sale as tobacco cessation products and marketed and sold solely for that purpose.

    Section 2.That chapter 34-46 be amended by adding thereto a NEW SECTION to read as follows:

    No person may sell a vapor product other than in an unopened package originating with the manufacturer and depicting the warning labels required by federal law, or sell a vapor product through self-service display other than a display that is:

            (1)    A vending machine permitted under subdivision 34-46-2(5); or

            (2)    Located in a tobacco specialty store.

    A violation of this section is a Class 2 misdemeanor. A person is not liable for more than one violation of this section on a single day."

181otb

    On page 1, line 1, of the printed bill, delete everything after "Act to" and insert "define vapor products as tobacco products for the purpose of regulating the use of the products by minors and to place certain restrictions on the sale of vapor products.".

    On page 1, delete line 2.

    And that as so amended said bill do pass.

Also MR. PRESIDENT:

    The Committee on State Affairs respectfully reports that it has had under consideration HB 1054 and returns the same with the recommendation that said bill be amended as follows:

1054jk

    On page 1, line 13, of the House engrossed bill, after "plans" insert ". This term does not include any insurance producer licensed pursuant to chapter 58-30, unless an insurance producer is directly involved in the adjudication of claims".

    On page 3, line 7, delete "has" and insert "coverage, and causation of claims have".
    On page 4, line 15, delete "director may, at the director's discretion," and insert "secretary of Labor and Regulation may".

    And that as so amended said bill do pass.

Respectfully submitted,
Larry Rhoden, Chair

MESSAGE FROM THE HOUSE

MR. PRESIDENT:

    I have the honor to return herewith SB 39, 60, 88, and 119 which have passed the House without change.

Respectfully,
Arlene Kvislen, Chief Clerk

MOTIONS AND RESOLUTIONS

    Friday, Sen. Rhoden announced his intention to reconsider the vote by which SB 170 lost.

    Sen. Rhoden moved that the Senate do now reconsider the vote by which SB 170 lost.

    The question being on Sen. Rhoden's motion to reconsider the vote by which SB 170 lost.

    And the roll being called:

    Yeas 23, Nays 11, Excused 1, Absent 0

    Yeas:
Begalka; Buhl O'Donnell; Ewing; Frerichs; Hunhoff (Jean); Jensen; Jones (Tom); Kirkeby; Krebs; Lucas; Maher; Peters; Rampelberg; Rave; Rhoden; Soholt; Solano; Sutton; Tidemann; Tieszen; Van Gerpen; Vehle; Welke

    Nays:
Brown; Curd; Heineman (Phyllis); Holien; Jones (Chuck); Lederman; Monroe; Novstrup (Al); Omdahl; Otten (Ernie); White

    Excused:
Bradford

    So the motion having received an affirmative vote of a majority of the members-elect, the President declared the motion carried and SB 170 was up for reconsideration and final passage.

    SB 170: FOR AN ACT ENTITLED, An Act to revise the structure for compensating surface owners for losses due to mineral development.

    Having had its second reading was up for reconsideration and final passage.

170oa

    Sen. Rhoden moved that SB 170 be amended as follows:

    On the printed bill, delete the previously adopted amendment (170tb).

    On page 1, delete lines 10 to 13, inclusive, and insert "determining damages, consideration shall be given to the period of time during which the loss occurs and the. The surface owner may elect to be paid damages in annual installments over a period of time. However, the surface owner shall be compensated for harm caused by exploration only by a single sum payment. The payments contemplated by this".

    Which motion prevailed.

    The question being "Shall SB 170 pass as amended?"

    And the roll being called:

    Yeas 21, Nays 13, Excused 1, Absent 0

    Yeas:
Begalka; Buhl O'Donnell; Ewing; Frerichs; Hunhoff (Jean); Jensen; Jones (Tom); Kirkeby; Krebs; Lucas; Maher; Peters; Rampelberg; Rave; Rhoden; Soholt; Solano; Sutton; Tidemann; Vehle; Welke

    Nays:
Brown; Curd; Heineman (Phyllis); Holien; Jones (Chuck); Lederman; Monroe; Novstrup (Al); Omdahl; Otten (Ernie); Tieszen; Van Gerpen; White

    Excused:
Bradford

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

CONSIDERATION OF REPORTS OF COMMITTEES

    Sen. Rave moved that the reports of the Standing Committees on

    Health and Human Services on SB 145 as found on page 397 of the Senate Journal; also

    Transportation on SB 36 as found on page 398 of the Senate Journal; also

    Appropriations on SB 28 as found on page 400 of the Senate Journal; also

    Appropriations on SB 135 as found on page 400 of the Senate Journal; also

    Appropriations on SB 137 as found on page 400 of the Senate Journal; also

    State Affairs on SB 141 as found on page 401 of the Senate Journal; also

    State Affairs on SB 158 as found on page 402 of the Senate Journal be adopted.

    Which motion prevailed.

SECOND READING OF CONSENT CALENDAR ITEMS

    HB 1095: FOR AN ACT ENTITLED, An Act to revise and clarify certain provisions relating to municipal officers.

    Was read the second time.

    The question being "Shall HB 1095 pass?"

    And the roll being called:

    Yeas 34, Nays 0, Excused 1, Absent 0

    Yeas:
Begalka; Brown; Buhl O'Donnell; Curd; Ewing; Frerichs; Heineman (Phyllis); Holien; Hunhoff (Jean); Jensen; Jones (Chuck); Jones (Tom); Kirkeby; Krebs; Lederman; Lucas; Maher; Monroe; Novstrup (Al); Omdahl; Otten (Ernie); Peters; Rampelberg; Rave; Rhoden; Soholt; Solano; Sutton; Tidemann; Tieszen; Van Gerpen; Vehle; Welke; White

    Excused:
Bradford

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.


    HB 1105: FOR AN ACT ENTITLED, An Act to repeal certain outdated and obsolete provisions regarding the compilation and publication of certain local government annual fiscal reports.

    Was read the second time.

    The question being "Shall HB 1105 pass?"

    And the roll being called:

    Yeas 34, Nays 0, Excused 1, Absent 0

    Yeas:
Begalka; Brown; Buhl O'Donnell; Curd; Ewing; Frerichs; Heineman (Phyllis); Holien; Hunhoff (Jean); Jensen; Jones (Chuck); Jones (Tom); Kirkeby; Krebs; Lederman; Lucas; Maher; Monroe; Novstrup (Al); Omdahl; Otten (Ernie); Peters; Rampelberg; Rave; Rhoden; Soholt; Solano; Sutton; Tidemann; Tieszen; Van Gerpen; Vehle; Welke; White

    Excused:
Bradford

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    HB 1135: FOR AN ACT ENTITLED, An Act to revise certain exceptions to special assessments levied upon real property.

    Was read the second time.

    The question being "Shall HB 1135 pass?"

    And the roll being called:

    Yeas 34, Nays 0, Excused 1, Absent 0

    Yeas:
Begalka; Brown; Buhl O'Donnell; Curd; Ewing; Frerichs; Heineman (Phyllis); Holien; Hunhoff (Jean); Jensen; Jones (Chuck); Jones (Tom); Kirkeby; Krebs; Lederman; Lucas; Maher; Monroe; Novstrup (Al); Omdahl; Otten (Ernie); Peters; Rampelberg; Rave; Rhoden; Soholt; Solano; Sutton; Tidemann; Tieszen; Van Gerpen; Vehle; Welke; White

    Excused:
Bradford

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.


SECOND READING OF SENATE BILLS AND JOINT RESOLUTIONS

    Sen. Rave moved that SB 116, 176, and 157 be deferred to Tuesday, February 25, the 26th legislative day.

    Which motion prevailed.

    SB 106: FOR AN ACT ENTITLED, An Act to identify criteria to deny a minor boundary change.

    Was read the second time.

    The question being "Shall SB 106 pass?"

    And the roll being called:

    Yeas 31, Nays 3, Excused 1, Absent 0

    Yeas:
Begalka; Buhl O'Donnell; Curd; Ewing; Frerichs; Heineman (Phyllis); Holien; Hunhoff (Jean); Jensen; Jones (Chuck); Jones (Tom); Kirkeby; Krebs; Lederman; Maher; Monroe; Novstrup (Al); Otten (Ernie); Peters; Rampelberg; Rave; Rhoden; Soholt; Solano; Sutton; Tidemann; Tieszen; Van Gerpen; Vehle; Welke; White

    Nays:
Brown; Lucas; Omdahl

    Excused:
Bradford

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 9: FOR AN ACT ENTITLED, An Act to revise provisions related to the Interim Appropriations Committee.

    Was read the second time.

    The question being "Shall SB 9 pass as amended?"

    And the roll being called:

    Yeas 30, Nays 4, Excused 1, Absent 0

    Yeas:
Begalka; Brown; Buhl O'Donnell; Curd; Frerichs; Heineman (Phyllis); Holien; Hunhoff (Jean); Jensen; Jones (Chuck); Jones (Tom); Kirkeby; Krebs; Lederman; Lucas; Maher; Novstrup (Al); Otten (Ernie); Peters; Rampelberg; Rhoden; Soholt; Solano; Sutton; Tidemann; Tieszen; Van Gerpen; Vehle; Welke; White

    Nays:
Ewing; Monroe; Omdahl; Rave

    Excused:
Bradford

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 94: FOR AN ACT ENTITLED, An Act to appropriate money in order to fund the fiscal year 2014 health insurance shortfall for Board of Regents employees compensated from tuition, fees, and other funds, and to declare an emergency.

    Was read the second time.

    The question being "Shall SB 94 pass as amended?"

    And the roll being called:

    Yeas 31, Nays 3, Excused 1, Absent 0

    Yeas:
Begalka; Brown; Buhl O'Donnell; Curd; Ewing; Frerichs; Heineman (Phyllis); Hunhoff (Jean); Jensen; Jones (Chuck); Jones (Tom); Kirkeby; Krebs; Lederman; Lucas; Maher; Monroe; Novstrup (Al); Otten (Ernie); Peters; Rampelberg; Rave; Soholt; Solano; Sutton; Tidemann; Tieszen; Van Gerpen; Vehle; Welke; White

    Nays:
Holien; Omdahl; Rhoden

    Excused:
Bradford

    So the bill having received an affirmative vote of a two-thirds majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 184: FOR AN ACT ENTITLED, An Act to make an appropriation to support the South Dakota Hall of Fame and to declare an emergency.

    Was read the second time.


    The question being "Shall SB 184 pass as amended?"

    And the roll being called:

    Yeas 21, Nays 13, Excused 1, Absent 0

    Yeas:
Begalka; Buhl O'Donnell; Ewing; Frerichs; Heineman (Phyllis); Jones (Chuck); Jones (Tom); Kirkeby; Krebs; Lederman; Lucas; Novstrup (Al); Peters; Soholt; Sutton; Tidemann; Tieszen; Van Gerpen; Vehle; Welke; White

    Nays:
Brown; Curd; Holien; Hunhoff (Jean); Jensen; Maher; Monroe; Omdahl; Otten (Ernie); Rampelberg; Rave; Rhoden; Solano

    Excused:
Bradford

    So the bill not having received an affirmative vote of a two-thirds majority of the members-elect, the President declared the bill lost.

    Sen. Jones (Tom) announced his intention to reconsider the vote by which SB 184 lost.

    SB 185: FOR AN ACT ENTITLED, An Act to make an appropriation to support the W.H. Over Museum and to declare an emergency.

    Was read the second time.

    The question being "Shall SB 185 pass as amended?"

    And the roll being called:

    Yeas 21, Nays 13, Excused 1, Absent 0

    Yeas:
Begalka; Buhl O'Donnell; Ewing; Frerichs; Jones (Chuck); Jones (Tom); Kirkeby; Krebs; Lederman; Lucas; Novstrup (Al); Omdahl; Peters; Rampelberg; Soholt; Sutton; Tidemann; Van Gerpen; Vehle; Welke; White

    Nays:
Brown; Curd; Heineman (Phyllis); Holien; Hunhoff (Jean); Jensen; Maher; Monroe; Otten (Ernie); Rave; Rhoden; Solano; Tieszen

    Excused:
Bradford

    So the bill not having received an affirmative vote of a two-thirds majority of the members-elect, the President declared the bill lost.

    Sen. Jones (Tom) announced his intention to reconsider the vote by which SB 185 lost.


    SB 165: FOR AN ACT ENTITLED, An Act to develop a systematic process for the performance management review of state agencies.

    Was read the second time.

    The question being "Shall SB 165 pass?"

    And the roll being called:

    Yeas 30, Nays 4, Excused 1, Absent 0

    Yeas:
Begalka; Brown; Buhl O'Donnell; Curd; Ewing; Frerichs; Heineman (Phyllis); Holien; Hunhoff (Jean); Jensen; Jones (Chuck); Jones (Tom); Kirkeby; Krebs; Lederman; Lucas; Maher; Novstrup (Al); Omdahl; Otten (Ernie); Rampelberg; Rave; Rhoden; Soholt; Solano; Tieszen; Van Gerpen; Vehle; Welke; White

    Nays:
Monroe; Peters; Sutton; Tidemann

    Excused:
Bradford

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 114: FOR AN ACT ENTITLED, An Act to establish a wine direct shipper license and to provide for certain direct shipments of wine.

    Was read the second time.

114tb

    Sen. Lederman moved that SB 114 be further amended as follows:

    On page 2, line 17, of the Senate Commerce and Energy Committee engrossed bill, after "wine" insert "if the wine is not in distribution in this state".

    Sen. Begalka requested a roll call vote.

    Which request was not supported.

    The motion to amend lost.

    The question being "Shall SB 114 pass as amended?"

    And the roll being called:

    Yeas 23, Nays 11, Excused 1, Absent 0

    Yeas:
Brown; Buhl O'Donnell; Curd; Ewing; Frerichs; Heineman (Phyllis); Jensen; Kirkeby; Krebs; Lucas; Maher; Monroe; Novstrup (Al); Omdahl; Otten (Ernie); Peters; Rave; Rhoden; Soholt; Sutton; Tidemann; Tieszen; Welke

    Nays:
Begalka; Holien; Hunhoff (Jean); Jones (Chuck); Jones (Tom); Lederman; Rampelberg; Solano; Van Gerpen; Vehle; White

    Excused:
Bradford

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 107: FOR AN ACT ENTITLED, An Act to accommodate legislation on the state aid to education formula and to make an appropriation therefor.

    Was read the second time.

    The question being "Shall SB 107 pass?"

    And the roll being called:

    Yeas 33, Nays 1, Excused 1, Absent 0

    Yeas:
Begalka; Brown; Buhl O'Donnell; Curd; Ewing; Frerichs; Heineman (Phyllis); Holien; Hunhoff (Jean); Jensen; Jones (Chuck); Jones (Tom); Kirkeby; Krebs; Lederman; Lucas; Maher; Monroe; Novstrup (Al); Omdahl; Otten (Ernie); Peters; Rampelberg; Rave; Rhoden; Soholt; Solano; Tidemann; Tieszen; Van Gerpen; Vehle; Welke; White

    Nays:
Sutton

    Excused:
Bradford

    So the bill having received an affirmative vote of a two-thirds majority of the members-elect, the President declared the bill passed and the title was agreed to.

    SB 168: FOR AN ACT ENTITLED, An Act to provide oversight and accountability to certain economic activities.

    Was read the second time.

168ta

    Sen. Frerichs moved that SB 168 be amended as follows:

    On the printed bill, delete everything after the enacting clause and insert:

    "Section 1. The commissioner of the Governor's Office of Economic Development and the commissioner of the Bureau of Finance and Management shall compile and publish, in printed and electronic form, an annual unified economic development report by January first. The report shall provide information concerning the building South Dakota fund, revolving economic development and initiative fund, and the employer's investment in South Dakota's future fund. The information shall include:

            (1)    The name of each recipient; the dollar amount each recipient received; and summaries of the number of full-time and part-time jobs created or retained, an overview of benefits offered, and the degree to which job creation and retention, wage and benefit goals and requirements of recipient and related corporations, if any, have been met. The report shall include source of the state financial assistance provided; the number of recipients within each category of funding; overview of benefits offered; and the degree to which job creation and retention, wage and benefit rate goals and requirements have been met;

            (2)    The cost to the state and the approving agency for each source of financial assistance provided to a recipient during the preceding fiscal year;

            (3)    The extent to which any employees of and recipients of any funding have received job training assistance; and

            (4)    To the extent the data exists, a cost-benefit analysis prepared by the Bureau of Finance and Management based upon the collected data and required for the preparation of the unified economic development report. The cost-benefit analysis may include the cost to the state for the revenues reductions, cost to administer the economic development funds and programs, projected revenues gained from the

assistance provided by the state, and other metrics which can be measured along with a baseline assessment of the original intent of the legislation. The Bureau of Finance and Management shall also indicate the purpose of the state funding assistance to the extent that it is provided in the enabling legislation, or note the absence of such information, and any measureable goals established by the administer of the fund or program. Where possible, the analysis shall cover a five year period projecting the cost and benefits over this period. The Bureau of Finance and Management may utilize outside services or sources for development of the methodology and modeling techniques. The unified economic development report shall include the cost-benefit analysis starting July 1, 2013. The Bureau of Finance and Management shall work in conjuncture with the Governor's Office of Economic Development.

    Section 2. Terms used in this Act mean:

            (1)    "Economic development incentive," any funding provided to a project or program through the building South Dakota fund; the revolving economic development and initiative fund, and the employer's investment in South Dakota's future fund;

            (2)    "Future economic development incentive," any future incentive enacted after July 1, 2014, for the purpose of recruitment or retention of business.

    Section 3. The director of the Bureau of Finance and Management shall prepare an analysis and report, produced in consultation with the commissioner of the Governor's Office of Economic Development and the secretary of the Department of Labor concerning:

            (1)    The projects and programs funded by the building South Dakota fund by January 1, 2016, and no less than once every three (3) years thereafter;

            (2)    The businesses and projects funded by the revolving economic development and initiative fund and the employer's investment in South Dakota's future fund by January 1, 2015, and no less than once every three years thereafter.

    Section 4. No later than the September 1, 2014, the commissioner of Bureau of Finance and Management, shall submit to the chairs of the Government Operations and Audit Committee a three-year plan for evaluating economic development incentives.

    Section 5. The commissioner of the Bureau of Finance and Management baseline assessment of the economic development incentives, including, if applicable:

            (1)    The number of aggregate jobs associated with the entity receiving assistance and the aggregate annual revenue that entity generates for the state through the direct taxes applied to the entity and through the taxes applied to their employees;

            (2)    The statutory and programmatic goals and intent of the economic development incentives, if the goals and intentions are included in the incentive's enabling statute or legislation;
            (3)    The number of entities provided the economic development incentives during the previous twelve month period;

            (4)    The value of the economic development incentives granted, and ultimately claimed, listed by the North American Industrial Classification System (NAICS) Code associated with the entity receiving the benefit, if such NAICS Code is available;

            (5)    An assessment and five year projection of the potential impact on the state's revenue stream from carry forwards allowed under the economic development incentives;

            (6)    An estimate of the economic impact of the economic development incentives including:

            (a)    An estimate of the number of jobs that were the direct result of the incentive; and
            (b)    A statement by the commissioner of the Governor's Office of Economic Development as to whether, in his or her judgment, the statutory and programmatic goals of the economic development incentives benefit are being met, with obstacles to such goals identified, if possible;

            (7)    The estimated cost to the state to administer the economic development incentives, if such information is available;

            (8)    An estimate of the extent to which benefits of the economic development incentives remained in state or flowed outside the state, if such information is available;

            (9)    In the case of economic development incentives where measuring the economic impact is significantly limited due to data constraints, whether any changes in statute would facilitate data collection in a way that would allow for better analysis;

            (10)    Whether the effectiveness of the economic development incentives could be determined more definitively if the legislature were to clarify or modify the economic development incentive's goals and intended purpose;

            (11)    A recommendation as to whether the economic development incentives should be continued, modified or terminated, the basis for the recommendation, and the expected impact of the recommendation on the state's economy;

            (12)    The methodology and assumptions used in carrying out the assessments, projections and analyses required pursuant to subdivisions (1) through (8) of this section.

    Section 6. Each department, office, board, and agency of the state shall cooperate with the commissioner of the Bureau of Finance and Management and shall provide to the Bureau of Finance and Management any records, information, data, and data analysis as may be necessary to complete the report required pursuant to this Act

    Section 7. The Governor during the submission of the budget report to the Legislature pursuant to § 4-7-9 shall identify each economic development incentive for which an evaluation was completed in accordance with this Act in the period since the Governor's previous budget submission. For each evaluated economic development incentives, the Governor's budget submission shall include a recommendation as to whether the economic development incentives should be continued, modified, or terminated."

    Which motion lost.

    The question being "Shall SB 168 pass?"

    And the roll being called:

    Yeas 31, Nays 2, Excused 2, Absent 0

    Yeas:
Begalka; Brown; Buhl O'Donnell; Curd; Ewing; Frerichs; Heineman (Phyllis); Holien; Hunhoff (Jean); Jensen; Jones (Chuck); Kirkeby; Krebs; Lederman; Maher; Monroe; Novstrup (Al); Omdahl; Otten (Ernie); Peters; Rampelberg; Rhoden; Soholt; Solano; Sutton; Tidemann; Tieszen; Van Gerpen; Vehle; Welke; White

    Nays:
Lucas; Rave

    Excused:
Bradford; Jones (Tom)

    So the bill having received an affirmative vote of a majority of the members-elect, the President declared the bill passed and the title was agreed to.

    Sen. Rave moved that HB 1061, 1029, 1012, 1015, 1045, 1058, 1079, 1014, 1110, 1069, 1178, 1019, 1081, 1068, 1028, 1033, and 1108 be deferred to Tuesday, February 25, the 26th legislative day.

    Which motion prevailed.

SIGNING OF BILLS

    The President publicly read the title to

    SB 39: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the regulation of certain open containers of alcoholic beverages.

    SB 60: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the titling and licensing of boats and motor vehicles and to establish certain penalties for violation of those provisions.

    SB 88: FOR AN ACT ENTITLED, An Act to repeal certain outdated and obsolete provisions regarding traction engines operated over bridges.

    SB 119: FOR AN ACT ENTITLED, An Act to update and revise the statutes relating to the South Dakota Board on Geographic Names.

    HB 1064: FOR AN ACT ENTITLED, An Act to repeal certain obsolete provisions and references concerning weather modification programs.

    HB 1074: FOR AN ACT ENTITLED, An Act to revise certain provisions concerning actions prohibited near polling places.

    HB 1101: FOR AN ACT ENTITLED, An Act to revise certain provisions regarding the board of directors of the Science and Technology Authority.

    And signed the same in the presence of the Senate.

    Sen. Rave moved that the Senate do now adjourn, which motion prevailed and at 4:07 p.m. the Senate adjourned.

Jeannette Schipper, Secretary